TCL plans to invest $170 mn, up stake in phase 2 of Gabon plant

MUMBAI: Tata Chemicals Ltd (TCL), which has acquired 25.1 per cent stake in the ammonia-urea fertiliser complex at Gabon in Africa, plans to invest $170 million in phase two and raise its stake further.

"We have acquired 25.1 per cent stake in stream 1 (phase 1) and are expecting to hold a substantially higher one in stream 2... We are expecting to invest $170 million in stream 2," Tata Chemicals Managing Director R Mukundan told reporters here.

The company, however, did not specify the exact percentage of stake it would further acquire.

TCL has acquired a little over 25 per cent stake in the ammonia-urea fertiliser complex at Gabon in Africa for $290 million (nearly Rs 1,300 crore).

Out of the investment of $290 million, $82 million would be raised through preferential allotment of shares, sale of investments worth $68 million over next three years and the balance through debt funding of $140 million, he said.

The fertiliser complex, with a production capacity of 1.3 million tonnes per annum, is being set up through a joint venture between Olam and the Gabon government at an investment of $1.3 billion.

In the JV, Olam had 80 per cent stake while the Gabon government has 20 per cent.

The time schedule for executing stream 2 would be mutually decided by Olam International, Republic of Gabon and TCL over next 24 months. The project is envisaged to have a capacity of 2.6 MTPA per annum.